Hamilton

Money from sale of City Motor land to stay in Ward 4: Merulla

Money generated from the sale of the former City Motor Hotel site will likely stay in Ward 4, the area's councillor says, rather than going into the general city coffers.
The city will sell the City Motor Hotel property to a developer who will take advantage of its new mixed-use zoning. (Samantha Craggs/CBC)

Money generated from the sale of the former City Motor Hotel site will likely stay in Ward 4, the area's councillor says, rather than going into the general city coffers.

The city will put out a request for proposals in the coming months for a private developer to buy the property, which the city spent $1.9 million to expropriate last year.

The proceeds will stay in Ward 4 through area rating, says Coun. Sam Merulla — likely to develop the Delta Secondary School property after the high school there closes.

The city isn’t sure yet how much it will get for the land, Merulla said. But it’ll be more than $1.9 million because the property is now zoned mixed use to allow for commercial and residential development. The planning committee approved that on Tuesday and council will ratify it next week.

“It’s worth a great deal more today because of the zoning enhancements,” Merulla said.

The money to expropriate the hotel, he said, also came from Ward 4 area rating money.

Called a “blight” to the city landscape, the City Motor Hotel was expropriated and demolished by the city in 2012 and 2013. City plans allow for buildings as tall as eight stories on the site, which is at 55 Queenston Rd. It also includes getting rid of the Queenston Road traffic circle.

“We had a blight in the east end of Hamilton that was centrally located, and one that was a hub for prostitution, gang-related activities and murder,” Merulla said.

Other councillors spoke in favour of the plan, calling the former hotel the “poster child” of urban blight.

“There’s a long history over the years of criminal activity and other nefarious things going on in the vicinity of the former development,” said Coun. Chad Collins of Ward 5.

“I’m certainly supportive of what’s going on here today.”

The Hamilton-Wentworth District School Board plans to close Delta in 2017. When it offers the land for sale, the city plans to buy it and offer it to a developer, possibly for condominiums.

After that, Merulla said, he'd like to use the proceeds of that to expropriate derelict properties along Barton and Kenilworth and turn them into affordable housing.